Gold is climbing back toward its record highs as the dollar flops once again.

Last week the precious metal plunged 10% from record highs above $1,000 as investors booked profits.

However, a severely weakened dollar, persistent concerns over the US and global economy and high oil prices indicate strong support for gold prices.

This morning the dollar fell against the euro this morning on the back of strong business climate data from European powerhouse Germany.

Thomson Financial reports that at 10.16 am GMT, spot gold in London was trading at $944.40 an ounce, up from $934.70 in late New York trade yesterday.

“Gold is a commodity with intrinsic worth,” says Stuart Goldsmith. “It is rare and valuable. It’s a great place to store value in turbulent times.”The problem is, the big boys do not want the plebs getting wind of this fact. Imagine if too many of us run for the safety of gold (taking our cash out of banks, building societies, ISAs and so on) – it could precipitate the total collapse of the system.

“So there’s one smoking gun for you – if ‘someone’ can make gold seem erratic, fickle and prone to sharp drops in price,
it makes it far less tempting as a safe haven. But can ‘they’ keep the price of gold low? It takes a serious amount of cash
to achieve this in the face of such financial uncertainty.

“I’m putting my money on the fact that they will not be able to hold the price down indefinitely. I expect another break
through the $1,000 line very soon and this time, hopefully, with a continued rise.”